Nigeria: Oil Cargo Arrest - Court Dismisses General Hydrocarbons' Bid to Serve Orders On Navy

General Hydrocarbons successfully overturned the order detaining its crude oil cargo. However, First Bank quickly appealed this ruling.

A Federal High Court in Port Harcourt dismissed General Hydrocarbons' request to serve court orders related to a lawsuit with First Bank of Nigeria Limited. Nduka Obaigbena, chairman of THISDAY Group, owns General Hydrocarbons. Justice E.A. Obile denied the request on 7 May 2025 because an appeal was already filed.

On 2 May 2025, General Hydrocarbons requested the court to serve a ruling from 25 March 2025. This ruling dismissed their current suit and lifted an arrest order from 9 January 2025 regarding the FPSO vessel Tamara Tokoni. The parties involved include authorities like the Nigerian Navy and the Nigerian Maritime Administration.

The company also wanted the court's order from 29 April 2025 served on these parties. In March 2025, after General Hydrocarbons argued that the arrest order was an abuse of process, the court dismissed their suit and lifted the arrest order.

However, on 7 May 2025, the court rejected General Hydrocarbons' application for service. As a result, the seized oil cargo remains detained.

Background

First Bank and FBN Quest Trustees sought a Mareva injunction on 27 December 2024. They claimed $225.8 million was owed by General Hydrocarbons as of September 30, 2024.

The court granted an order preventing all banks in Nigeria from releasing funds up to $225.8 million due to Mr. Obaigbena and others associated with General Hydrocarbons. This included blocking funds belonging to Efe Damilola Obaigbena and Olabisi Eka Obaigbena.

General Hydrocarbons argued that First Bank misled the court into granting this order through fraudulent actions. In January 2025, a Lagos court reversed this Mareva injunction due to conflicting orders from another jurisdiction.

In February, First Bank announced it would appeal against this reversal and seek an injunction pending appeal determination.

The bank later appealed against the Port Harcourt decision dismissing its case against General Hydrocarbons. It stated that the matter is not maritime but rather about debt recovery.

First Bank expressed disappointment over the ruling that declared their arrest order expired within fourteen days since it was ex parte. They insisted that their crude oil cargoes remain under arrest and filed appeals against both decisions made by the courts.